McDonald's delivery riders to receive Socso coverage

McDonald's delivery riders to receive Socso coverage

KUALA LUMPUR: McDonald’s Malaysia and the Social Security Organisation (Socso) signed a Memorandum of Understanding (MoU) on October 17 to ensure all McDonald’s delivery riders are covered by Socso’s Self-Employment Social Security Scheme (SKSPS).

This move enables the restaurant’s delivery riders who are self-employed individuals (OBS) and are part of the 20 informal sectors in the country to receive protection against employment injuries, including occupational diseases and accidents during work-related activities.  

The MoU ceremony between McDonald’s Malaysia and Socso was witnessed by Socso chairman Datuk Seri Subahan Kamal, and signed by managing director and local operating partner of McDonald’s Malaysia Datuk Azmir Jaafar as well as Socso chief executive Datuk Seri Dr Mohammed Azman Aziz Mohammed.

It was also witnessed by chief people officer of McDonald’s Malaysia Azhar Darbi, and Socso deputy chief executive of operations John Riba Marin. 

During the MoU signing, Datuk Azmir Jaafar said that McDonald’s was constantly looking for ways to improve the benefits and incentives provided to their delivery riders.

“Even if they work according to their respective time and needs, these delivery riders are the frontline workers that ensure the effectiveness of our McDelivery service, which happens to be an essential business segment that contributes to a significant amount of sales for the company.

“The benefits, incentives and sponsorship via SKSPS are the company’s token of appreciation for their tireless efforts in ensuring Malaysians can enjoy their favourite McDonald’s meal,” he said. 

Datuk Seri Subahan Kamal shared that Socso is in the midst of implementing various strategic approaches to provide more OBS with SKSPS protection.

“Based on the statistics, there are 2.7 million Malaysians who are self-employed, but only 568,686 OBS are registered with SKSPS as of September 30, 2022. 

“I have great hope that the ceremony held today can spread awareness about the importance of having social security protection and to attract more individuals and other parties such as the ministry, government agencies, business companies and non-governmental organisations (NGOs) to work together with us to protect the OBS group in Malaysia,” he said.

The MoU signing makes McDonald’s the first food and beverage (F&B) company in Malaysia to collaborate with Socso through the SKSPS scheme to protect food delivery riders. 

Additionally, McDonald’s delivery riders will also receive SKSPS contributions from the government through the Self-Employment Scheme (SPS) Contribution Match initiative under the 2022 Budget. 

The government will fund 80 per cent (RM186.20) of the total amount of the SKSPS second contribution plan (RM232.80). Meanwhile, the OBS only need to pay the remaining 20 per cent balance (RM46.60) for one year coverage.  

As an act of goodwill, McDonald’s Malaysia will sponsor the first year’s contribution amounting to RM250,000, whereby all 5,000 of their delivery riders will be covered under SKSPS. 

SKSPS allows OBS like McDonald’s delivery riders to enjoy as much as eight Socso benefits such as Medical Benefits, Temporary Disablement Benefits, Permanent Disablement Benefits, Dependants’ Benefits, Funeral Benefits, Facilities for Physical or Vocational Rehabilitation and Educational Benefits.

This collaboration will also, among other things, make full use of both parties’ areas of expertise, which includes knowledge sharing and delivery services, to increase awareness about social security protection for the well-being of all Malaysians.

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